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Apple saw an excellent and better-than-anticipated Q3 2026 in terms of iPhone sales, but its revenue for services—like Apple TV, Apple Music, AppleCare, or iCloud—slipped downward, disappointing experts who were hoping for more. Further, fears about memory prices and supply constraints slightly soured reception to what could have otherwise been a slightly positive but business-as-usual quarter.
That’s the key takeaway from the company’s Q3 2026 earnings call today.
As for specific numbers, iPhone revenue was $54.25 billion, thanks to a 22 percent increase in iPhone sales. The Mac saw $10.35 billion in revenue, the iPad $6.19 billion, wearables $7.88 billion, and services $30.74 billion. Overall, Apple enjoyed $109.42 billion in revenue during the quarter.
Apple also noted that the Mac had a very strong quarter in many regions, partially crediting that result to the popularity and success of the MacBook Neo, a stripped-down, more affordable entry-level SKU in the MacBook lineup.
There may be stormy waters ahead, though. Apple has already raised many of its products’ prices in the face of a global mismatch between supply and demand for memory. Chip manufacturing is also tight. Significant price increases could lead to lower overall sales if prices exceed consumers’ comfort level. This quarter contained some of that impact, but it likely does not reflect the full brunt of it. Many potential Mac buyers might choose to wait until better economic conditions over the next several months, hoping for prices to eventually come back down.
Apple hasn’t yet raised iPhone prices, but that’s still a possibility. Cook said while taking questions on the call that Apple expects memory costs to continue to increase into the next quarter and beyond. That situation could continue to impact the business, he said.
In the meantime, relatively strong iPhone and Mac sales in this quarter didn’t stop Apple’s stock value from sliding around eight percent in after-hours trading. Investors may have been weighing those positives against relatively soft numbers for services and the continuing impact of supply constraints and memory costs.
This was longtime CEO Tim Cook’s final earnings call before John Ternus succeeds him for the next quarter’s call. Before taking questions—where talk was all business and numbers—Cook made the following statement on the call:
I just wanted to take a moment to say thank you to all of you from our shareholders, particularly our long-term shareholders, who have put their trust in us for so many years, to the analysts who have followed our company so closely.
As you know, this will be my final earnings call, and John will lead these calls going forward. The transition is going seamlessly, and I am beyond excited for John to step into his new role and lead Apple into its next era.
He is truly one of a kind and there is no better person to take the helm of the company. As I said, I couldn’t be more confident in his leadership, in our executive team, and in the extraordinary people at Apple who are determined to enrich the lives of our users all over the world.
We have a bright future ahead, and I truly have never been more optimistic. So thank you all.
